CBDC wholesale project could be in the Swiss central banks' headlights…

Quick take

1 minute read

• Central-bank digital currencies have been the talk of the town of the course of 2020. 

• Many central banks all over the world have been coming and our ring contemplating what benefits a CBDC would have on their operations.

Central-bank digital currencies have been the talk of the town over the course of 2020. Numerous central banks all over the world have been contemplating what benefits a CBDC could have on their operations.

The bank for international settlements (BIS) and the Swiss National bank are just two institutions that are looking into the benefits of such a project by using blockchain technology.

In an announcement earlier this month on the 3rd of December, BIS had successfully completed 2 proof of concepts that connected the current payment systems to be distributed ledger with a wholesale CBDC project.

The Project, known as “Helvetia“ is the new move from the top stock exchange in Switzerland known as Six Group.

This project looks into the legal and technological legitimacy of transferring cryptocurrencies through a CBDC.

It was noted though in the announcements that this should not be taken as if the central bank of Switzerland will issue a wholesale CBDC project for definite in the future.

A member of the board at Swiss National bank, Andréa Maechler made it clear that the banking institution doesn’t want to miss any opportunities when it comes to improving the financial system as it is and are looking over any emerging technologies such as blockchain.

They further said:

“Irrespective of which technologies the financial markets adopt next, the safety and reliability of Swiss financial infrastructure must be preserved. If [distributed ledger technology] can deliver significant improvements in securities trading and settlement, then the SNB will be prepared.”

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